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    Les Fleurs

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    Les Fleurs, a boutique in Paris, France, had the following accounts in its accounting records at December 31, 20X2 (amounts in Euros, denoted as "E")

    Purchases.....................
    E250,000 Freight In.................. E8,000
    Sales discounts............. 4,000 Purchase returns........ 7,000
    Inventory Sales...................... 400,000
    December 31, 20X1..... 20,000 Purchase discounts.... 3,000
    December 31, 20X2..... 30,000 Sales returns............. 8,000

    Compute the following for Les Fleurs during 20X2: (Do not convert the figures to US dollars.)

    Net sales revenue
    Cost of goods sold
    Gross profit

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    https://brainmass.com/business/accounting/les-fleurs-156868

    Solution Preview

    1. Net sales revenue

    Net sales revenue is gross sales less the sales returns and the sales discounts. Here the gross sales are 400,000, the sales return are 8,000 and the sales discounts are 4,000. The net sales revenue will be 400,000-8,000-4,000=388,000

    2. Cost of goods sold

    The cost of goods sold is given as goods available for sale - the ending inventory. The goods ...

    Solution Summary

    The solution explains how to calculate the net sales revenue, cost of goods sold and gross profit

    $2.19

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